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Startups in India To Get Major Boost As HDFC Bank’s SmartUp Grants Aims To Empower Social Sector Startups; Here’s How To Apply

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Mumbai, February 10: With an aim to help and empowering social sector startups in India, HDFC Bank has launched an initiative and has invited applications for the same. We are aware that India is home to one of the largest startup ecosystems in the world.The HDFC Bank has invited applications from startups across all sectors and solo entrepreneurs for its SmartUp grants.

The SmartUp grants by HDFC Bank under #Parivartan –the bank’s umbrella CSR brand. It is aimed at finding and deploying long-term, sustainable solutions at scale, to address social issues and contribute to the economic and social development of the country, the bank said in a statement.

This year, the HDFC bank informed that it will focus on start-ups creating social impact at scale in sectors such as Education – technology (ed-tech) and skill development, among others. Reports inform that the startups will be evaluated basis their market reach, penetration and scalability of the product, degree of social impact in beneficiaries’ lives and economic viability of product at scale.

The HDFC Bank has partnered with nine start-up incubators registered with Govt of India’s MeitY platform to screen, mentor, and monitor start-ups.  The nine incubators are from premier institutes and include IIT – Delhi, IIT – BHU, AIC BIMTECH Noida, IIM Kashipur, GUSEC Gujarat, C-CAMP Bangalore, Banasthali University – Jaipur, Villgro Incubation – Chennai, and T-HUB Hyderabad.

Here’s how startups can apply for the HDFC Bank’s SmartUp grants:

  1. The startups in India can apply for the HDFC Bank’s SmartUp grants on February 16.
  2. After the application process, the bank and incubators will jointly reach out and engage with them through the SmartUp portal hosted on Ministry of Electronics and Information Technology’s website.
  3. The incubator partners will then screen and shortlist applications and the SmartUp team will select finalists.
  4. Thereafter, finalists will pitch their startups to a jury comprising the senior management of the bank.
  5. It must be noted that the startups will be evaluated basis their market reach, penetration and scalability of the product, degree of social impact in beneficiaries’ lives and economic viability of product at scale.

Smita Bhagat, Country Head – Government, E-commerce and Start-ups, HDFC Bank, said: “Enterprises working in the social sector are doing commendable work in changing the lives of millions of Indians. SmartUp grants is one way of offering our support and encouragement in this journey. We want to be a pillar of support for social entrepreneurs who want to bring a positive change to the society.”

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Startup

Agnikul Cosmos, an Indian Space Startup, Becomes First Company To Fire Fully 3D Printed Rocket Engine As Others Play Catch Up

Agnikul Cosmos (Photo Credits: Twitter/ @AgnikulCosmos)

Chennai-based space tech startup Agnikul Cosmos, which is developing India’s first private small satellite launch vehicle, became the first company in the world to successfully test a fully three dimensional (3D) rocket engine. Agnikul Cosmos has successfully test-fired its higher stage semi-cryogenic rocket engine, Agnilet.

Srinath Ravichandran, CEO and co-founder of Agnikul Cosmos, said, “This entire engine – Agnilet – is just one piece of hardware from start to finish and has zero assembled parts. We don’t think anyone in the world has ever pushed 3d printing of a rocket engine to this extent and we couldn’t be happier to have conceived, designed, realized and test-fired this engine, fully in India.”

Usually, rocket engines gave 100s of parts in them but Agnilet was designed in such a way to encapsulate all these parts into just one piece of hardware.

Meanwhile, there are other players in the race. In September last year, Hyderabad-based Skyroot Aerospace revealed their fully 3D printer cryogenic rocket engine, Dhawan-I. The US-based startup, Firehawk Aerospace, is also close to producing a fully 3D printed rocket engine.

About  AgniKul Cosmos:

AgniKul Cosmos Private Limited is a Chennai-based start-up building country’s first private satellite launch vehicle. The vehicle, Agnibaan, can carry up to 100 kilos to LEO (low earth orbit), which is nearly 700 kilometres above the Earth’s surface.

Launched in 2017 by Srinath Ravichandran and Moin SPM, Agnikul was the first Indian aerospace startup to enter into a non-disclosure agreement with the Department of Space under the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

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Startup

Startup Ecosystem in India Has Capability To Create Sustainable Jobs, Holistic Plan Needed To Spur Domestic Funding: Nasscom

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New Delhi, February 9: With an aim to help startups grow in India, IT industry body Nasscom said that a holistic plan is needed to spur domestic funding for startups in the country. India must increase its pipeline for domestic funding which will fuel innovation for India and help create sustainable jobs. At a panel discussion on IT initiatives announced in Budget 2021-22, Debjani Ghosh, President of software association NASSCOM said that Indian companies and domestic investors need to be encouraged to invest in startups.

The startups in India are competing at a global level, and their competitiveness and success, to some extent, hinges on attracting and retaining good talent, she said and added that ESOPs (employee stock ownership plan) was one such tool used by startups.

Indian startups are competing at a global level, and their competitiveness and success, to some extent, hinges on attracting and retaining good talent, she said and added that ESOPs (employee stock ownership plan) was one such tool used by startups.

The top official added saying that a level-playing-field must be ensured between them and foreign investors The measures announced in the Budget for startups are steps “in the right direction”, given the importance of this ecosystem and its vital role in fuelling innovation and sustainable jobs, she said.

In the Union Budget 2021, the government has proposed to incentivise incorporation of one-person companies (OPCs) and extend certain tax exemptions by a year for startups, steps that will promote entrepreneurship and encourage NRIs to invest.

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Finance Startup

Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen

Women Entrepreneurs in India (Photo Credits: Pixabay)

New Delhi, February 8: In a bid to boost women entrepreneurship globally and empower budding businesswomen, Visa on Monday announced the recipients of its grant programme in India. This would be Visa’s first global grant programme which will be in partnership with several startups that are led by woman entrepreneurs. Visa has partnered with IFundWomen, Bunko Junko, My Chapter One and MoWo Social Initiatives, where each one received a Rs 7,00,000 grant from Visa.

Resources from Instamojo will grow their businesses digitally, in a continued effort to offer better services to their communities. In a statement, Kevin Phalen, global head of business solutions, Visa that  access to funding, educational resources and a digital presence are fundamental building blocks that will help small businesses get back to not only surviving, but thriving.

Women-owned enterprises in India have grown from 14 percent to 20 percent in the past decade and employ between 22 to 27 million people.

  1. Highlighting this growth in women-led startups in India, Visa received applications from hundreds of businesses across the country in sectors including apparel and fashion, healthcare and wellness, food and beverages and art and events.
  2. The company evaluated 16 semi-finalists by a jury panel comprising senior leaders across Visa, FICCI FLO (FICCI Ladies’ Organization) and Instamojo. The final winners were selected based on the count of jury votes.

In addition to the grants, Instamojo, the digitization partner, is providing the winners with tools and resources to help build their digital presence.

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Startup

New Rules for OPCs To Directly Benefit Startups, Small Companies and Innovators in India; Check List of Amended Rules for One Person Companies

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New Delhi, February 6: In a bid to directly benefit Startups in India, especially those who are supplying products & services on e-commerce platforms, the incorporation of  is being incentivized by amending the Companies (Incorporation) Rules. This would benefit the startups and innovators in the country to bring in more unincorporated businesses into the organized corporate sector.

This is being done to allow OPCs to grow without any restrictions on paid up capital and turnover, allowing their conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India.

In addition, the fast track process for mergers under the Companies Act, 2013 has also been now extended to also include mergers of Startups with other Startups and with Small companies, so that the process of mergers & amalgamations is completed faster for such companies.

The amendment notification was issued on February 1, 2021. The amendments to the Rules governing OPCs will cover the following, from April 1, 2021:

  1. Previously NRIs were not allowed to incorporate OPCs. Now any natural person, who is an Indian citizen, whether resident in India or otherwise would be allowed to form an OPC.
  2. For being considered as a resident in India, the residency period has been proposed to be reduced to 120 days from 182 days for NRIs.
  3. Rule relating to voluntary conversion unless OPC has completed two years from the date of incorporated is proposed to be omitted and with effect from 01.04.2021, Conversion of One Person Company into a Public company or a Private company shall be permitted anytime. A One Person company may be converted into a Private or Public Company other than a company registered under section 8 of the Act, after increasing the minimum number of members and directors to two or minimum of seven members and three directors as the case may be,
  4. Similarly the limitation of Paid up capital & turnover presently applicable for OPCs (paid up share capital of fifty lakhs rupees and average annual turnover during the relevant period of two crore rupees) is being done away with so that there are no restrictions on the growth of OPCs in terms of their paid up capital & turnover.
  5. Rationalization of e-forms applicable for OPCs by omitting e-Form No. INC-5 and modification of e-form INC-6 (application for conversion from OPC to a Private company or a Public company and also Private company to OPC.
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MSME Startup

Aero Space 2021: MSMEs Bag Defence Orders Worth Rs 203 Crore in The Event

Fighter Aircraft (Photo Credits: Pixabay)
Fighter Aircraft (Photo Credits: Pixabay)

The scope of Micro, Small and Medium enterprises have been rapidly expanding. The sector is no longer limited to handicrafts, apparel and other labour intensive industries. Its areas of operations are even including highly advanced and technology incentive ones. Newer capital driven avenues are being opened up for the enterprises. Even MSMEs related to the production of defence related equipment and technology are gaining momentum. In the on going Aero India 2021 in Bengaluru, several small and medium scale enterprises have participated and showcased their prowess.  Overall the MSMEs have garnered a deal worth Rs 203 Crore from the Ministry of Defence during the event. Evaluation of Business Performance: 5 Ways to Measure True Success.

Union Defence Minister Rajnath Singh on Friday addressed the Start-Up Manthan organised by the Innovation for Defence Excellence (iDEX) at the Air Force Station, Bengaluru. The event provides an opportunity for start-ups to showcase their capabilities, products and services to the targeted audience. During his speech, Singh announced that 45 MSMEs participating in the event have bagged orders worth Rs 203 Crore, terming it a big achievement. “We have signed 128 MoUs, 19 ToTs, 4 Handing Overs, 18 Product Launches and 32 major announcements, totalling a grand figure of 201 feats, ” he added.

The number of start-ups in the aero-space sector has also increased manifolds. Over 300 start-ups have been currently engaged and under iDEX. Meanwhile,  10 start-ups have developed products worth ₹100 crore which were put on display at the Aero India event this year.  In Defence India Start-up Challenge (DISC) for the ongoing year, over 1,200 start-ups and innovators took part. Out of the total participants more than 60 start-ups in 30 technological areas under DISC challenges have been recognised. 3 Simple & Effective Growth Hacks for Every Small Business.

The Union Defence Minister informed that around  Rs 4,500 Crore worth investment has been made in 384 start-ups through Fund of Funds Scheme. “In such an ecosystem, it will not be an exaggeration to say that our economy is soon going to be driven by these start-ups,” said Rajnath Singh. Adding that the government is acutely conscious that start-ups being the latest entrants in the defence manufacturing sector require that extra push.

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Startup

Startups in India Get a Major Boost As Govt Allocates Rs 830 Crore for Fund of Funds for Startups in Union Budget 2021–22

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New Delhi, February 3: With an aim to give a major fillip to the startups in India, the government has allocated Rs 830 crore for the ‘Fund of Funds for Startup’s in the Budget 2021-22. This is higher then the revised estimate of about Rs 430 crore. The government has set up a Fund of Funds for Startups (FFS) with a corpus of Rs 10,000 crore. The Small Industries Development Bank of India (SIDBI) is the operating agency for the FFS.

According to the Budget documents, the allocation for Startup India programme has been increased slightly to Rs 20.83 crore for 2021-22 from the revised estimate of Rs 20 crore in 2020-21.The government’s Startup India initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to the growth of budding entrepreneurs. The allocation for the fund of funds in Budget 2020-21 was Rs 1,054.97 core, but it was later revised to Rs 429.99 crore.

Moreover, the government has earmarked Rs 300 crore for credit guarantee fund. The cumulative allocation for the Department for Promotion of Industry and Internal Trade (DPIIT) has been hiked to Rs 7,782.24 crore for 2021-22 as against the revised estimate of Rs 7,583.06 crore in 2020-21. Similarly, the cumulative allocation for the department of commerce has also been increased to Rs 4,986 crore for 2021-22 as against the revised estimate of Rs 4,600 crore in 2020-21.

The total allocations for export promotion schemes, such as Market Access Initiative and Interest Equalisation Scheme, has been increased to Rs 2,365 crore for 2021-22 as against the revised estimate of Rs 2,175 crore in 2020-21.

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Startup

Union Budget 2021-22: Here Is What the First Paperless Budget Has In Store for Business Start-Ups

Union Budget 2021: Key Takeaways for Start-Ups| Representational Image (Photo Credits: Pixabay)
Union Budget 2021: Key Takeaways for Start-Ups| Representational Image (Photo Credits: Pixabay)

Union Finance Minister Nirmala Sitharaman on Monday presented the central government budget for the upcoming financial year 2021-22 in the parliament. The start-up sector also received a fair share of the estimated public expenditure for the fiscal year set ti begin from April 1, this year. To encourage budding start-up owners and aspiring business person, several steps have been proposed by the Finance Minister in the Union Budget that unveiled in the Lok Sabha yesterday. The allocation for Startup India initiative has been increased marginally to Rs 20.83 crore for the fiscal 2021-22 from  Rs 20 crore in 2020-21.

Mostly importantly, Sitharaman proposed to provide an extension of tax holiday to start-up owners for one additional year upto March 31, 2022. Along with this, he eligibility period of claiming capital gains exemption for investment made in the startups has also been extended till March 31, 2022. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

In the Union Budget 2021-22, Nirmala Sithraman has also proposed to set up a ‘world class’ Fintech (Finance-Technology Firms) park at Gujarat International Finance Tec-City, near state’s capital Gandhinagar. It has also been proposed to apportion a sum of Rs 15,000 to enhance the penetration of digital payments as well as other measures to boost financial inclusion.

For making legal compliance and regulations easier, the finance minister has proposed to use data analytics, artificial intelligence, machine learning to make regulatory filings more frictionless for businesses and startups in a revamp of the ministry of corporate affairs (MCA) portal. Centre had said that the ministry would look to introduce AI-based features in MCA-21 when version 3.0 of the portal is rolled out. Union Budget 2021 Highlights: The 5 Big Takeaways.

MCA-21 shares crucial information about firms to various stakeholders such as the regulators, investors, creditors and companies. The MCA-21 3.0 will reportedly have various process to ease the regulatory process. It is expected to have a single source of truth, ease of doing business, e-adjudication, online compliance monitoring, among others, thereby making the authenticity and comprehensiveness of corporate affairs even better.

For the start-ups and initiatives in the healthcare and wellness sector, the Budget has proposed to allocate a sum of Rs 2.23 Lakh Crore. It includes a healthcare portal for the entire country for digital health management, as well as a Mission Poshan 2.0 for nutrition and diet programmes in rural districts.

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Startup

Startup Ecosystem in India To Get Major Boost As IIT-Kanpur and IIM-Lucknow Sign MoU To Empower Future Innovators of the Country

Startup (Representational Image Only, Photo Credits: NeedPix.com)

New Delhi, February 1: In a bid to give an impetus to innovation in the startup ecosystem in the country, the IIT Kanpur Research and Technology Park and IIM Lucknow-Enterprise Incubation Centre (IIML-EIC) have signed a memorandum of understanding (MoU). The pact between the two world-class premier institutes would boost the entrepreneurial ecosystem and empower future innovators of the country. The two teams met over a zoom call for signing the MoU.

Abhay Karandikar, Director, IIT Kanpur and Chairman Board of Technopark, said that the association between the two top institutes will not only foster close linkages between academia and industry but will also open new avenues for resource sharing. The official further added that IIM Lucknow Incubator and Technopark are a part of academic powerhouses and bring unique values to the innovation ecosystem. We are delighted to partner with the IIM Lucknow Incubator to blend these strengths and leverage synergies. “We believe that this partnership has the real potential to make a deep and tangible impact on not only Uttar Pradesh but also the country at large,” he added.

Anadi Pande of IIM-Lucknow said that as an emerging economy, one needs to fill in the institutional voids that have long existed to create something on the lines of the Silicon Valley and incubation and innovation is the only way out. “At IIM-Lucknow, we are deep into artificial intelligence and have many technology start-ups incubated with us. This MoU will facilitate a collaborative exchange of ideas and knowledge between our start-ups and IIT-Kanpur and Technopark companies and our faculty,” he added.

India is witnessing an unprecedented boom in the innovation start-up ecosystem of the country. The association between IIT-Kanpur and IIM-Lucknow may serve as a benchmark for other IITs and IIMs to follow. In the current scenario the motto of “self-reliance” and ‘Make in India’ and start-up holds more prominence than ever before.

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Startup

5 Major Reasons behind Why Indian Startups Fail

why indian startup fails

The Indian startup ecosystem continues to expand and grow rapidly. Right from the Government support, increased participation of corporates, evolution of the investor landscape, incredible global exposure, and the growth of digital infrastructure in India- the various elements of the startup ecosystem are coming together in a melodious symphony.

According to a NASSCOM report, the Indian startup ecosystem has the potential to grow 4X by 2025, and the number of unicorns is expected to be 95-105. The cumulative valuation of these unicorns is expected to reach USD 350-390Bn.

Despite all the favorable factors, 90% of the startups fail in India within the five years of their inception, according to a report by IBM Institute for Business Value and Oxford Economics.

Wondering why startups fail? Here are some of the key reasons behind the high startup failure rate:

  1. Lack of Innovation

One of the crucial reasons why startups fail in India is their lack of innovation. Innovative business ideas help to attract customers, beat the competition, and resolves challenging situations.

Although India is said to have the third-largest ecosystem in the world, the country lacks meta-level start-ups like Facebook, Google, and Twitter. Indian startups must drive their business operations with innovation, rather than replicating global startups.

  1. Lack of Funds

There must be millions of creative ideas floating around. However, turning these ideas into reality requires funds. Insufficient fundraising is a roadblock that leads to the shutdown of many Indian startups.

For startups that manage to receive seed funding, the inability to raise follow-up funds becomes the major cause of startup failure. So the startups must think about having effective business and revenue models.

  1. Lack of Focus

Be it a product, its features, or the market positioning, few investors and mentors firmly believe that the founders of Indian startups often start spreading themselves too thin.

A startup is best suited to cater to a particular problem for a specific segment. Though the business dynamics will keep evolving and the focus will not remain the same forever, it is essential for founders to sharply define what exactly they want to build.

  1. Right Market for Products

One of the biggest reasons why startups fail in India- the consumer does not need its products. Many founders in India end up falling in love with their product without realizing if it solves the customer`s need. Thus, it is important to target the right market segment and gain an in-depth understanding of your customers.

  1. Lack of Strong Leadership

Startups in India are mostly driven by the vision of their founders and core team members. While the innovative idea is significant in the journey of a startup, the absence of strong leadership is another reason why startup fails in India.

While some entrepreneurs are born with strong leadership skills, others can develop them. If you do not have the leadership skills, you can delegate the role to someone who has a futuristic vision.

You can also find a mentor to help you build and develop leadership skills. You can also study and gain an in-depth knowledge of leadership skills with the Everything about Entrepreneurship course. Learn the essential strategies to become a strong leader for your startup by talking with the top industry experts. To know more click here: https://www.badabusiness.com/?ref_code=ArticlesLeads